704 Appendix B Consolidated Statements of Operations millions, except per share data) 2016 2015 2014 Sales $69,495 $73,785 $72,618 Cost of sales 48,872 51,997 51,278 Gross margin 20,623 21,788 21,340 Selling, general and administrative expenses 13,356 14,665 14,676 Depreciation and amortization 2,298 2,213 2,129 Gain on sale (620) Earnings from continuing operations before interest expense and income taxes 4,969 5,530 1,535 Net interest expense 1,004 607 382 Earnings from continuing operations before income taxes 3,965 4,923 3,653 Provision for income taxes 1,296 1,602 1,204 Net earnings from continuing operations 2,669 3,321 2,449 Discontinued operations, net of tax 68 42 (4,085) Net earnings / (loss) $ 2,737 $ 3,363 $ (1,636) Basic earnings / (loss) per share Continuing operations $ 4.62 $ 5.29 $ 3.86 Discontinued operations 0.12 0.07 6.44) Net earnings / (loss) per share $ 4.74 $ $ (2.58) Diluted earnings / (loss) per share Continuing operations $ 4.58 $ 5.25 $ 3.83 Discontinued operations 0.12 0.07 6.38) Net earnings / (loss) per share $ 4.70 $ 5.31 $ (2.56) Weighted average common shares outstanding Basic 577.6 627.7 634.7 Dilutive effect of share-based awards 4.9 5.2 5.4 Diluted 582.5 632.9 640.1 Antidilutive shares 0.1 3.3 Dividends declared per share $ 2.36 $ 2.20 $ 1.99 Note: Per share amounts may not foot due to rounding. See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Comprehensive Income (millions) 2016 2015 2014 Net income / (loss) $2,737 $3,363 $(1,636) Other comprehensive (loss) / income, net of tax Pension and other benefit liabilities, net of tax benefit of $9, $18, and $90 (13) (27) Currency translation adjustment and cash flow hedges, net of provision for taxes of $2, $2, and $2 (139) 4 (3) 431 Other comprehensive (loss) / income (9) 30 292 Comprehensive income / (loss) $2,728 $3,333 See accompanying Notes to Consolidated Financial Statements. $(1,344)Appendix B 705 Consolidated Statements of Financial Position January 28, January 30, (millions, except footnotes) 2017 2016 Assets Cash and cash equivalents, including short-term investments of $1, 110 and $3,008 $ 2,512 $ 4,046 Inventory 8,309 ,601 Assets of discontinued operations 69 322 Other current assets 1,100 1,161 Total current assets 1,990 14,130 Property and equipment Land 6, 106 6,125 Buildings and improvements 27,611 27,059 Fixtures and equipment ,503 5,347 Computer hardware and software 2,651 2,617 Construction-in-progress 200 315 Accumulated depreciation 17,413 ) (16,246) Property and equipment, net 24,658 25,217 Noncurrent assets of discontinued operations 12 75 Other noncurrent assets 771 340 Total assets $ 37,431 $40,262 Liabilities and shareholders' investment Accounts payable $ 7,252 $ 7,418 Accrued and other current liabilities 3,737 4,236 Current portion of long-term debt and other borrowings 1,718 815 Liabilities of discontinued operations 153 Total current liabilities 12,708 2,622 Long-term debt and other borrowings 11,031 11,945 Deferred income taxes 861 823 Noncurrent liabilities of discontinued operations 18 18 Other noncurrent liabilities 1,860 1,897 Total noncurrent liabilities 13,770 14,683 Shareholders' investment Common stock 46 50 Additional paid-in capital 5,661 5,348 Retained earnings 5,884 , 188 Accumulated other comprehensive loss Pension and other benefit liabilities 601) (588) Currency translation adjustment and cash flow hedges (37) (41) Total shareholders' investment 10,953 12,957 Total liabilities and shareholders' investment $ 37,431 $40,262 outstanding at January 30, 2016. Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 556, 156,228 shares issued and outstanding at January 28, 2017; 602,226,517 shares issued and Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding at January 28, 2017 or January 30, 2016. See accompanying Notes to Consolidated Financial Statements.706 Appendix B Consolidated Statements of Cash Flows (millions) 2016 2015 2014 Operating activities Net earnings / (loss) $2,737 $3,363 $(1,636) Earnings / (losses) from discontinued operations, net of tax 68 42 4,085) Net earnings from continuing operations 2,669 3,321 2,449 Adjustments to reconcile net earnings to cash provided by operations: Depreciation and amortization 2,298 2,213 2,129 Share-based compensation expense 113 115 71 Deferred income taxes 41 (322 Gain on sale (620) Loss on debt extinguishment 422 285 Noncash (gains) / losses and other, net 57 40 Changes in operating accounts nventory 293 (316) (512) Other assets 36 227 (115) Accounts payable and accrued liabilities (543) 579 803 Cash provided by operating activities-continuing operations ,329 5,254 5,157 Cash provided by / (required for) operating activities-discontinued operations 107 704 692) cash provided by operations 5,436 5,958 1,465 Investing activities Expenditures for property and equipment (1,547) (1,438 (1,786) Proceeds from disposal of property and equipment 46 28 95 Proceeds from sale of businesses 1,875 Cash paid for acquisitions, net of cash assumed (20) Other investments 28 24 106 Cash (required for) / provided by investing activities-continuing operations (1,473) 489 1,605) Cash provided by / (required for) investing activities-discontinued operations 19 (321) Cash (required for) / provided by investing activities (1,473) 508 1,926) Financing activities Change in commercial paper, net (80) Additions to long-term debt 1,977 1,993 Reductions of long-term debt 2,641) 85 ) 2,079) Dividends paid (1,348) 1,362) 1,205 Repurchase of stock 3,706) 3,483 (26) Stock option exercises 221 300 373 Cash required for financing activities 5,497 ) (4,630) Net (decrease) / increase in cash and cash equivalents (1,024) (1,534) 1,836 Cash and cash equivalents at beginning of period() 1,515 ,046 Cash and cash equivalents at end of period 2,210 695 $2,512 $4,046 Supplemental information $ 2,210 Interest paid, net of capitalized interest $ 999 Income taxes paid / (refunded) $ 604 $ 1,514 871 Property and equipment acquired through capital lease obligations (127) 238 1,251 (@Includes cash of our discontinued operations of $25 million at February 1, 2014. 126 88 See accompanying Notes to Consolidated Financial Statements.Appendix B 707 Consolidated Statements of Shareholders' Investment Inventory Turnover Rulipsand Accumulated Common Stock Additional Other (millions) Stock Par Paid-in Retained Comprehensive Shares Value Capital Earnings (Loss)/Income Total February 1, 2014 632.9 $53 $4,470 $12,599 $(891) $16,231 Net loss (1,636) (1,636) Other comprehensive income 292 292 Dividends declared (1,273) (1,273) Repurchase of stock (0.8 (46 - (46) Stock options and awards B. 1 429 429 January 31, 2015 640.2 $53 $4,899 $9.644 $(599) $13,997 Net earnings 3,363 3,363 Other comprehensive loss (30) (30) Dividends declared - (1,378 - (1,378 Repurchase of stock (44.7) (4 ) 3,441) 3,445) Stock options and awards 6.7 1 449 450 January 30, 2016 602.2 $50 $5,348 $8, 188 $(629 $12,957 Net earnings 2,737 2,737 Other comprehensive loss (9) (9) Dividends declared 1,359) 1,359) Repurchase of stock (50.9 (4) (3,682 3,686) Stock options and awards 4.9 313 313 January 28, 2017 556.2 $46 $5,661 $5,884 $(638) $10,953 accompanying Notes to Consolidated Financial Statements. paled (HOM1) ouis yiupe-so-mujer sifT cable turnover, its receiver Badnish erHen ST 19099 or "turned ov etter. Because the accou He turnover Everyone, the second ratio, average us collect receiver amnot be con However, the average days in youting the accounts readi ARETHAHS ally. the lower to it receivables railo is, the better, The accov able turnover minions spsine>189 nipisM 22015 Theraw et alleslieboog and ucil eyesq vasqmoo & Inboms it egidasong nigga e on id ordi eboog all qu asham yougmos & crom erT .2boog ccong Todaid svid of brot equita valstooge706 Appendix B Consolidated Statements of Cash Flows (millions) 2016 2015 2014 Operating activities Net earnings / (loss) $2,737 $3,363 $(1,636) Earnings / (losses) from discontinued operations, net of tax 68 42 4,085) Net earnings from continuing operations 2,669 3,321 2,449 Adjustments to reconcile net earnings to cash provided by operations: Depreciation and amortization 2,298 2,213 2,129 Share-based compensation expense 113 115 71 Deferred income taxes 41 (322 Gain on sale (620) Loss on debt extinguishment 422 285 Noncash (gains) / losses and other, net 57 40 Changes in operating accounts nventory 293 (316) (512) Other assets 36 227 (115) Accounts payable and accrued liabilities (543) 579 803 Cash provided by operating activities-continuing operations ,329 5,254 5,157 Cash provided by / (required for) operating activities-discontinued operations 107 704 692) cash provided by operations 5,436 5,958 1,465 Investing activities Expenditures for property and equipment (1,547) (1,438 (1,786) Proceeds from disposal of property and equipment 46 28 95 Proceeds from sale of businesses 1,875 Cash paid for acquisitions, net of cash assumed (20) Other investments 28 24 106 Cash (required for) / provided by investing activities-continuing operations (1,473) 489 1,605) Cash provided by / (required for) investing activities-discontinued operations 19 (321) Cash (required for) / provided by investing activities (1,473) 508 1,926) Financing activities Change in commercial paper, net (80) Additions to long-term debt 1,977 1,993 Reductions of long-term debt 2,641) 85 ) 2,079) Dividends paid (1,348) 1,362) 1,205 Repurchase of stock 3,706) 3,483 (26) Stock option exercises 221 300 373 Cash required for financing activities 5,497 ) (4,630) Net (decrease) / increase in cash and cash equivalents (1,024) (1,534) 1,836 Cash and cash equivalents at beginning of period() 1,515 ,046 Cash and cash equivalents at end of period 2,210 695 $2,512 $4,046 Supplemental information $ 2,210 Interest paid, net of capitalized interest $ 999 Income taxes paid / (refunded) $ 604 $ 1,514 871 Property and equipment acquired through capital lease obligations (127) 238 1,251 (@Includes cash of our discontinued operations of $25 million at February 1, 2014. 126 88 See accompanying Notes to Consolidated Financial Statements